Uruguay: Cuts in Public Wages to Finance the 'Coronavirus Fund'

Uruguay's President Luis Lacalle Thursday announced cuts to public officials' cuts and pensions to finance the "Coronavirus Fund", which is intended to pay for the treatment of Covid-19 patients and medical supplies. 

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That decision implies a cut of 20 percent of the salaries of the president and his ministers.

The remuneration of legislators and directors of public institutions will be reduced in equal magnitude.

Additionally, in the next two months, the salaries and pensions of public servants, who earn more than US$ 1,780 a month, will be reduced in amounts that could range between 5 and 10 percent. The exact magnitude of the discount was not announced though.

The Uruguayan president recognized that the population is going through a difficult situation due to the decrease in economic activity, unemployment and lack of income.

In this sense, he also announced the delivery of food baskets for the neediest families​​​​​​​.​​​​​​​

Covid-19 cases in South America up to March 27.

Nevertheless, the conservative politician will not cancel tax increases, which he put into effect earlier this month.​​​​​​​

Over the past few days, Uruguayans have shown their discontent over the inaction of a government whose main response to the pandemic has been to promote social isolation.

The population demanded state support against the economic difficulties and the reduction in their income unleashed by the measures to restrict contagion.

So far, Uruguay has reported 238 Covid-19 cases but no deaths from the disease​​​​​​.​​​​​​​